Columbia Pipeline Partners LP’s (NYSE CPPL) initial asset base comprises midstream infrastructure accumulated by NiSource (NYSE: NI) when the utility industry consolidated in the 1990s.
Whereas Dominion Midstream Partners LP (NYSE: DM) received only a fraction of Dominion Resources’ (NYSE: D) midstream assets, Nisource has elected to contribute all of its pipeline, storage and processing assets into an operating company (OpCo) in which Columbia Pipeline Partners will own a 14.6 percent interest.
The OPCO setup has become increasingly popular among recent initial public offerings (IPO), including Midcoast Energy Partners LP (NYSE: MEP) and Westlake Chemical Partners LP (NYSE: WLKP).
NiSource will split off its OpCo stake and its equity and general partner interests in Columbia Pipeline Partners in a separate publicly traded entity, Columbia Pipeline Group (NYSE: COLP), unlocking shareholder value by offering pure-play exposure to its midstream growth story.
Under this separation plan, NiSource shareholders would retain their current interest in the utility and receive a pro-rate dividend of shares in Columbia Pipeline Group in a tax-free transaction. NiSource’s split into a regulated electric and gas distribution utility and a pure-play midstream company is expected to take place in mid-2015.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jan. 27, 2022
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.